A DIVISION of BAE Systems which makes cockpit displays for fighter jets and digital engine controls for commercial aircraft has been taken off the market after its owner failed to agree a sale.

BAE Systems said there had been plenty of interest in its Platform Solutions business, which it put up for sale in September amid speculation that the operation could be worth as much as £1.3bn.

However, BAE said no sale had been agreed and it now wanted to end the period of uncertainty by withdrawing the business from sale.

Platform Solutions, which is largely based in North America and has a global workforce of around 4,200 people, is also a leading producer of components for low-emission hybrid buses. The move to offload the business, which is not a core part of the group, came as BAE prepared itself for government cuts to the defence budget. It was also thought chief executive Ian King wanted to build a war chest for acquisitions ahead of an expected consolidation of the American defence sector.

The Platform Solutions business generated annual earnings of $202m (£130m), before interest, tax, depreciation and amortisation, in 2009.